ACC levy reduction biggest Budget break for business

Updated at 7:01 am on 17 May 2013

The biggest break for business in this year's Budget is a $300 million reduction in ACC levies in 2014/15, rising to about $1 billion in the following year.

But the cuts, the exact size of which are still to be determined, come a year later than ACC and Labour Department officials had recommended and they are already paid for.

ACC Minister Judith Collins said ACC's investment returns were $1.1 billion ahead of budget at the end of February this year.

KPMG partner John Cantin said although the ACC levy cuts were the major item for business, there were a few other benefits, including some additional research and development grants.

Mr Cantin said it also includes a proposal for the Government to cash up tax losses for companies that do R and D, although there will not be further detail on that until June.

"In the start-up phase businesses are spending cash, if they can get some of that back from their tax losses that will be positive and will be a help for them."

The Budget promises an extra $100 million a year for what it calls an internationally focused growth package.

This includes an additional $98 million over four years for the Callaghan Innovation's business research and development grants.

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